Business Statistics BFS 5701 Submitted on

Prof. Kartikeya Bolar 4th October 2022

2022

STATISTICAL ANALYSIS
OFHOSPITALITY SECTOR
BY BKFS GROUP D2

GROUP MEMBERS
22B109 Ms. Dhanuka Mahesh Ghate
22B123 Mr. Pratik Kumar Dalabehra
22B125 Mr. Saket Bhatt
22B129 Mr. Vishnudev U
22B131 Mr. Amit Kumar
22B154 Mr. Aasif Khan
INDUSTRY NOTE:
Being one of the most popular travel destinations in the world has led to India's tourism and hospitality sector emerging
as one of the major forces behind growth in the country's services sector. India's tourism industry has a lot of potential
because, like many other nations, it is a significant source of foreign exchange. With a CAGR of 7% from 2016 to 2019,
the foreign exchange earnings increased, but the COVID-19 pandemic caused a decline in earnings in 2020.

The tourist and hospitality industry, which includes travel and hospitality services like hotels and restaurants, is widely
acknowledged to be a development agent, a catalyst for socioeconomic growth, and a significant source of foreign
exchange gains in many countries. India's rich and exquisite history, culture, and diversity is showcased through tourism
while also providing significant economic benefits. The consistent efforts of the central and the state governments has
helped the tourism industry to recover from the covid-19 pandemic shock and operate at the pre pandemic level.

In terms of the total contribution of travel and tourism to GDP in 2019, India is ranked 10th out of 185 nations by the
World Travel & Tourism Council. The GDP contribution of travel and tourism in 2019 was Rs. 1,368,100 crore (US$
194.30 billion), or 6.8% of the total economy. 39 million jobs, or 8% of all employment in India in 2020, were related to
the tourism industry.

From an estimated US$ 75 billion in FY20, the Indian travel market is predicted to grow to US$ 125 billion by FY27. Due
to improved airport facilities and increased access to passports, the estimated $20 billion Indian airline travel market is
expected to double in size by FY27. The Indian hotel market, which includes domestic, international, and outbound
travel, was estimated to be worth US$ 32 billion in FY20 and is anticipated to grow to US$ 52 billion by FY27, thanks to
rising traveller demand and persistent market expansion by travel agencies.

FUTURE OF HOSPITALITY INDUSTRY:

A "staycation" is a getaway where guests stay at opulent hotels to unwind and decompress after a long week. Major
hotel chains like Marriott International, IHG Hotels & Resorts, and Oberoi Hotels are introducing staycation offers where
guests can pick from a variety of curated experiences inside the hotel in order to meet these needs. The travel and
tourism sector in India has tremendous growth potential. The sector anticipates the expansion of the e-Visa programme,
which is anticipated to double foreign tourist arrivals in India. According to a joint study by Assocham and Yes Bank,
India's travel and tourism sector has the potential to grow by 2.5% as a result of increased budgetary allocation and
affordable healthcare options.

There is no denying that the tourism sector is growing in importance and has the potential to be a tool for development.
The tourism sector not only promotes growth but also raises living standards by offering a sizable number of diverse
employment opportunities. It encourages environmental protection, defends diverse cultural heritage, and supports
world peace. Compared to US$28.9 billion in 2018, the Indian tourism and hospitality industry is predicted to generate
US$50.9 billion in visitor exports by 2028.

MAJOR PLAYERS IN HOSPITALITY SECTOR:

Some of the country’s top hotel brands include:

• Marriott International,
• Indian hotels company
• ITC Hotels,
• Oberoi Hotels & Resorts.
• Lemon Tree Hotels,
• Accor Hotels,
• Radisson Hotel Group,
• Hyatt Hotels,
• Sarovar Hotels and
• Intercontinental Hotels Group
• The park hotels

SWOT ANALYSIS OF HOSPITALITY INDUSTRY IN INDIA:

STRENGTH:

There are over 1000 classified hotels with approximately 97,000 rooms available, more than enough to meet tourist
demand. Additionally, there are a number of global brands on the market that cater to the needs of visitors from abroad
while they are in India. Additionally, there are numerous tourist attractions, and labour costs are low in comparison to
the rest of the world. These factors give hotel owners better profit margins and greater industry growth potential.

WEAKNESS:

The cost of land, which can account for up to 50% of the total project cost in India compared to only 15% abroad, is a
significant barrier to the growth of the hotel industry there. In addition, the country has higher taxes than other nations,
which significantly raises the cost of hotels. Additionally, some hotels offer few services that do not meet international
standards.

OPPORTUNITIES:

The nation is a popular travel destination thanks to its numerous attractions and unrivalled topography diversity. As a
result, it is anticipated that the number of foreign visitors will rise quickly, fueling further growth in the demand for
hotels. Additionally, the peak season can easily handle the demand for both domestic and foreign tourists. International
visitors typically arrive between September and March, while the majority of domestic visitors prefer to hold off until
the summer months during school breaks.

THREATS:

The hotel industry in India is being negatively impacted by the replacement of several hotels by guesthouses. Reduced
tourist traffic is a result of the nation's political unrest, which also has an impact on the hospitality sector's business. The
earnings of hotels are directly impacted by the nation's economic situation. The staff may not have received adequate
training to meet international standards as a result.
 STATISTICAL TESTS & THEIR INTERPRETATION

Net income
Pre-covid Post-covid
Standard deviation 2979.68 2889.57
Mean 572526.5 462911.6
Sample size 1200 1200
(End Note- pre-covid= FY2018-2019 and FY2019-2020; post-covid= FY2020-2021 and 2021-2022)

Alpha(α)=0.05

Ho: µ (pre covid net income) =< µ (post covid net income)

Ha: µ (pre covid net income) > µ (post covid net income)

Data: pre covid net income and post-covid net income

t = 914.83, df = 2395.7, p-value < 2.2e-16

Alternative hypothesis: true difference in means is greater than 0

95 percent confidence level

109417.7 Inf

Sample estimates:

mean of x mean of y

572526.5 462911.6

Since alpha > P there is enough evidence to reject Ho. Therefore, Ho is rejected

From the above result, we can conclude that there is a significant decrease in net income post covid.

Expense
Pre-covid Post-covid
Standard deviation 3005.2 3553.04
Mean 462911.6 539668.3
Sample size 600 600
(End Note- pre-covid= FY2018-2019 and FY2019-2020; post-covid= FY2020-2021 and 2021-2022)

Alpha(α)=0.05

Ho: µ (pre covid expense)=< µ (post covid expense)

Ha: µ (pre covid expense)> µ (post covid expense)

Data: pre covid expense and post covid expense

t = 430.15, df = 2333.8, p-value < 2.2e-16

 Alternative hypothesis: true difference in means is greater than 0

95 percent confidence level

57564.05 Inf

Sample estimates:

Mean of x mean of y

597453.4 539668.3

Since alpha > P there is enough evidence to reject Ho. Therefore, Ho is rejected.

From the above result, we can conclude that there is a significant decrease in expenses post covid.

Cash Flow from Operating Activities

Pre-covid Post-covid
Standard deviation 764.877 1393.28
Mean 42949.55 20480.05
Sample size 600 600
(End Note- pre-covid= FY2018-2019 and FY2019-2020; post-covid= FY2020-2021 and 2021-2022)

Alpha(α)=0.05

Ho: µ (pre covid CFO ) =< µ (post covid CFO)

Ha: µ (pre covid CFO) > µ (post covid CFO )

Data: pre covid CFO and post covid CFO

t = 489.72, df = 1861.5, p-value < 2.2e-16

Alternative hypothesis: true difference in means is greater than 0

95 percent confidence level

22393.99 Inf

Sample estimates:

Mean of x mean of y

42949.55 20480.05

Since alpha > P there is enough evidence to reject Ho. Therefore, Ho is rejected.

From the above result, we can conclude that there is a significant decrease in cash flow from operating post
covid.
Employees Compensation
Pre-covid Post-covid
Standard deviation 526.2272537 702.3349277
Mean 117078.5 109672.65
Sample size 600 600
(End Note- pre-covid= FY2018-2019 and FY2019-2020; post-covid= FY2020-2021 and 2021-2022)

Alpha(α)=0.05

Ho: µ(pre covid employee compensation) =< µ (post covid employee compensation)

Ha: µ (pre covid employee compensation) > µ (post covid employee compensation)

Data: pre covid compensation and post covid compensation

t = 292.33, df = 2222.6, p-value < 2.2e-16

Alternative hypothesis: true difference in means is greater than 0

95 percent confidence level

7364.161 Inf

Sample estimates:

Mean of x mean of y

117078.5 109672.6

Since alpha > P there is enough evidence to reject Ho. Therefore, Ho is rejected.

From the above result, we can conclude that there is a significant decrease in employee compensation post
covid.

Conclusion:
In order to determine if there has been a substantial change in the hospitality industry pre-covid and post-covid, we
have examined it in this assignment and used a sample size of 600 companies. We used pre-covid and post-covid data to
conduct a t-test to assess the significance of our hypothesis. As a result of the hypothesis testing, we conclude that:

1. There is a significant decrease in net income post covid

2. There is a significant decrease in expenses post covid.
3. There is a significant decrease in cash flow from operating post covid.
4. That there is a significant decrease in employee compensation post covid.